The European Commission (the “Commission”) has announced that it will launch a formal investigation into the Chinese e-commerce platform Shein.[1] The investigation focuses on the addictive design of the online store, the lack of transparency of recommendation systems and the sale of illegal products, including content which could constitute child sexual abuse material. These practices allegedly violate the European Digital Services Act (“DSA”) and European safety standards. The decision was taken following preliminary analyses of the risk assessment reports that Shein shared with the Commission under its obligations under the DSA, responses to formal requests for information from the Commission, and information obtained from third parties.
Shein was already under fire last autumn for selling child-like sex dolls on its webshop. In response, the French judiciary has already launched an investigation into the dissemination of violent, pornographic or degrading messages accessible to minors.[2] An attempt to ban the entire company from the French online market failed because the Paris Court of Appeal deemed it disproportionate. Since last year, the EU Consumer Protection Network (CPC) has also been investigating Shein for possible violations of consumer law.
The European Commission has indicated that there may be ‘systemic risks’, whereby a large platform structurally fails to prevent abuse. The DSA requires platforms to collect information about external sellers, actively detect non-compliant products and take effective measures to prevent problems. Under Article 34 of the DSA, such platforms must carry out risk assessments for this purpose and are required to share information at the request of the Commission.
In addition, the DSA requires Shein to be transparent about the main parameters used for its recommendation systems and to offer users at least one easily accessible option that is not based on profiling for each recommendation system.
A recommendation system is a fully or partially automated system used by an online platform to suggest or prioritise specific information in response to a search query submitted by a user. The DSA imposes a number of obligations regarding transparency about the parameters of that recommendation system. These parameters determine why certain information is proposed to a specific user. These obligations are set out in Article 27 of the DSA. On this basis, it must be understandable to Shein’s users how results are prioritised and ranked in response to a search query. The Commission is now also investigating whether Shein is sufficiently transparent about the recommendation systems it uses on its website and in its app.
In addition, online platforms are prohibited from using dark patterns in the design of the platform. This means that online platform providers may not design the online environment in such a way that it misleads or manipulates users or otherwise significantly distorts or undermines their ability to make free and informed decisions. This follows from Article 25 of the DSA. Examples of dark patterns include making it unreasonably difficult to cancel purchases or displaying choices in a non-neutral way in order to induce the user to make certain choices.
The Commission is now investigating whether Shein is violating the ban on dark patterns through the addictive design of its online shop, both on its website and within its app. This addictive design includes, among other things, giving points or rewards to consumers for engagement on the website or app, as well as the systems Shein has put in place to limit the risks of addiction.
If Shein is found to have violated the rules of the DSA, the Commission can impose a fine of up to 6% of its global annual turnover. For Shein, with a turnover of € 32 billion in 2024, that could amount to nearly € 2 billion. There is no legal deadline for completing the proceedings, so the outcome will take some time.
The timing is unfortunate for Shein, which recently opened its first physical store in Paris. There were many protests in the run-up to the store’s opening. The store is controversial because of numerous allegations of counterfeiting, degrading working conditions and a lack of sustainability on the part of the manufacturer.
Questions?
The announcement of the investigation into Shein is a clear signal that the Commission is now also targeting e-commerce platforms. E-commerce platforms would be wise to check whether they comply with all the requirements under the DSA.
SOLV regularly advises clients on obligations under the DSA and other European regulations relating to e-commerce platforms. For a no-obligation consultation, please contact Kim van Haastrecht, Jelle van den Biggelaar or Emma Messemaeckers van de Graaff.
[1] Press release 17 February 2026, Commission launches investigation into Shein under the Digital Services Act.
[2] NOS 6 November 2025, France wants EU investigation into Shein over sex doll scandal.
